The volume of buying cryptocurrencies for fiat money on centralized exchanges (CEX) has fallen by over 45% since the beginning of the year. 

Exchange Volume of Fiat to Crypto Almost Halved Since Early 2022

According to The Block, the volume of exchanging fiat for crypto on CEXs fell from $382.6 billion in January 2022 to $210.6 billion in September. The overall decline exceeded 45%. 

The volume drop has continued for the fifth consecutive month, following a surge in activity in April. Previously, falling volumes lasted for six months, after a spike in November 2021. In September, the drop was about $8.4 billion. 

The following exchanges recorded the highest volume of exchanging fiat for cryptocurrencies in September: 

  • FTX — 24.6%; 
  • Coinbase — 22.7%; 
  • Upbit — 13%.

The total volume amounted to about $210.6 billion. A month earlier, the figure was $219 billion. Over the past five months, the largest drop in exchanging fiat funds for cryptocurrencies was observed from May to June — about 20%.

The ongoing situation is provoked by the general decline of the cryptocurrency market, which has been seen since April. Many analysts state the onset of the crypto winter, and the general market situation confirms the validity of such an opinion.  

Author: Evgeny Tarasov
#Cryptocurrency #Exchange #News